The Company acquired 51% equity interest in a gold mining company in Russian Federation and completed the acquisition on 15 August 2012. The gold mining company is a company established under the laws of Russian Federation with limited liability and currently operates and owns the legal and beneficial interest in a mining project related to the mine. With an aggregate mining area of about 309.3 square kilometres, the mine is operated by the gold mining company and located in Molchan river, Zeyskiy region, Amur area, the Russian Federation. The mine is estimated to have sand gold reserve of 35 tonnes (C1 category). The gold mining company is still in process of devising its production and exploitation plan.

On 30 January 2015, the Company acquired a 35% equity interest of Port First. Major assets of Port First are its 70% equity interest in each of Jinxin Company and Jinhui Company. Jinxin Company (i) holds the mine exploitation license and mine exploration license of the Shanchakou Mine; (ii) holds the mine exploitation license of Jinjiling Area; and (iii) owns a gold processing plant and a gold refinery plant. Jinhui Company holds the mine exploitation license and mine exploration license of the Yaojia Mine. During the Year, the average selling price of gold was under great downward pressure which undermined the profitability of the gold mining business.

The gold mining business has valid licenses, environmental protection policies and permits for conducting its business operations and has complied with relevant local requirements and applicable laws and regulations for its business operations.

The principal risk and uncertainties of the gold mining business are (i) fluctuation of gold prices, which will direct effect the sale performance; and (ii) social and environmental issues, any complaints or protests by the local community, and change of the environmental regulation or requirement will direct effect the efficiency and the cost of the operation.

Property Development Business

The property development project “Anlu Taihe Paradise” at Liang Ji Bei Road, Anlu Economic Development District in Anlu city, Hubei province in the PRC is wholly owned by the Group and is having positive contribution to the Group. The project comprises three phases, with a total gross floor area of approximately 272,568 square meters and are approved for residential and commercial composite uses. The land use rights of the properties have been granted for a term expiring on 22 August 2065. In which, some of properties are held by the Group as investment purposes (as shops, kindergarten and hotel) to generate the rental income, and some of the properties are held for sale. The properties held for sales comprise various types of properties including villas and apartments. During the Year, the PRC property market condition had made challenges to the property development business. The property sales situations and average selling prices were still under great pressure and undermined the profitability of the property development business.

The property development business has valid licenses and permits for conducting its business operation, and has complied with relevant local requirements and applicable laws and regulations for its business.

The principal risk and uncertainties of the property development business are (i) economic conditions, both domestic and global issues will direct effect the sale performance; and (ii) government policy change, any change of the PRC government policies over the property industry in China will direct effect the sale performance and the cost of operation.

Mr. Mu Dongsheng - Executive Director and Chairman

Mr. Mu Dongsheng has 19 years of working experience in management in both government and private sector in the PRC and abroad. Mr. Mu holds a Master's Degree in Laws from the Beijing Foreign Affairs College. Mr. Mu was a consultant of the Company prior to joining the Company.

Mr. Yang Xue Jun - Executive Director and Chief Executive Officer

Mr. Yang Xue Jun holds a bachelor’s degree in Marine Meteorology from the Ocean University of China and is a postgraduate student of Financial Management of the La Trobe University of Australia. Mr. Yang, with over 21 years experience in marketing and promotion and strategic planning, had held various senior executive positions with firms in the PRC. Mr. Yang was appointed as an Executive Director on 2 July 2010 and was a consultant of the Company prior to joining the Group.

Mr. Sze Ming Yee - Executive Director

Mr. Sze Ming Yee has more than 16 years experience in property development and investment and is currently engaged in property development primarily in the PRC and primarily in Wenzhou. He also invests in securities in the PRC. He is a postgraduate student of Zhejiang University. Mr. Sze joined the Group on 15 January 2010 and is a director of Union Day Group Limited, the substantial shareholder of the Company.

Mr. Cheung Chuen - Independent Non-executive Director

Mr. Cheung Chuen is a certified public accountant practicing in the United States of America and Hong Kong. Mr. Cheung graduated from Hong Kong Shue Yan University in 1999 with majoring in accounting and obtained a master degree in professional accounting from the Hong Kong Polytechnic University in 2004. He is a member of the American Institute of Certified Public Accountants and an associate member of the Hong Kong Institute of Certified Public Accountants. Mr. Cheung has over the years gained extensive experience in accounting and auditing. He has been appointed as an Independent Non-executive Director of the Company since September 2004. Mr. Cheung currently is an executive director and independent non-executive director of China High Precision Automation Group Limited and Anxin-China Holdings Limited, respectively which both are listed companies in Hong Kong.

Mr. Ling Aiwen - Independent Non-executive Director

Mr. Ling Aiwen as an Independent Non-Executive Director. Mr. Ling is the executive director and A-share sponsor representative of the Jiuzhou Securities Company since March 2015. He was the executive director of the Goldman Sachs (Asia) & Goldman Sachs Gaohua Securities Company from 2011 to 2014. Mr. Ling has working experience in various securities firms in PRC, and has over 14 years of experience in the investment banking field. Mr. Ling graduated from the University of Science and Technology of China with Dual Bachelors’ Degree in Management Science & Engineering, and in Computer Science. Mr. Ling also holds a Master’s degree in Management Science from the Peking University.

Mr. Han Hongwei - Independent Non-executive Director

Mr. Han Hongwei as an Independent Non-Executive Director. Mr. Hanis the Chairman of the Bei Jing Yin He Xing Ye Asset Management Limited since 2009. He was the Chairman of Kai Feng Yin He Dong Jing Zhi Ye Limited from 2011 to 2014. He was the Chairman of Kai Feng Yin He Ri Hua Limited from 2010 to 2014. He was the Chairman of He Nan Mao Dun Ri Hua Limited from 2005 to 2012. Mr. Han has working experience in various private sector in PRC, and has over 20 years of experience in the investment and management field.

Mr. Poon Yan Wai - Company Secretary and Authorised Representative

Mr. Poon Yan Wai is a Fellow Member of The Hong Kong Institute of Certified Public Accountants. He also holds a Bachelor’s degree in Accountancy and Master’s degree in Corporate Finance from the Hong Kong Polytechnic University.